A version of this article appeared in the August 2017 issue of Morningstar ETFInvestor. Download a complimentary copy of ETFInvestor here.
Tilting toward small-cap stocks alone isn't a great way to improve long-term performance. Small-cap stocks have historically offered a small edge over their larger counterparts, but that slight return advantage hasn't been much compensation for their higher risk and decade-long stretches of underperformance.
Alex Bryan, CFA has a position in the following securities mentioned above: XSLV. Find out about Morningstar's editorial policies.